Contracts that breathe with the market
Couple prices to raw-material indices — recovered paper rises, your corrugated price rises; recovered paper falls, your price falls. Symmetric, transparent, audit-proof. No more annual negotiation rounds.
Index-triggered adjustments
47 contracts with index clause · Q3 / 2026
Why price adjustments are war today
Classic price adjustments are unilateral: the supplier emails at quarter-end with "due to rising raw-material costs…" — procurement negotiates for two weeks, half the increase is pushed back, both sides leave unhappy.
When the raw-material price drops later, the mirror adjustment downward usually does not happen — it has to be actively fought for. The result: structurally elevated contract prices that only ratchet one way.
An index clause solves this. When the contract names a reference index and a threshold, adjustments run automatically — both ways, mutually traceable, no email ping-pong. PAXLY operationalizes this mechanism per contract.
How auto price maintenance works
From contract sign-off to automatic adjustment — four configurable steps.
Pick the index
At contract sign-off you select the right raw-material index (recovered paper, PE, PP, PET, energy) — and which material class it governs.
Set the threshold
How much index movement triggers an adjustment? Typical ±5% — small swings get smoothed out, significant movements pass through.
Set the cadence
Quarterly, monthly, semi-annually — you control how often the index check runs and when the adjustment takes effect.
Run automatically
Threshold breached → PAXLY calculates, documents, notifies both sides. No negotiation, no debate.
What auto price maintenance changes day to day
Six levers — from market symmetry to audit confidence.
Market-based adjustments
Prices are coupled to raw-material indices — recovered paper rises, corrugated price rises. Falls, your price falls. Symmetric and fair.
Full transparency
Every adjustment ships with source evidence: which index, what movement, which threshold was crossed. No black-box math.
Fair both ways
Suppliers pass through real raw-material moves, buyers benefit when costs drop. End of the one-way ratchet.
No negotiation tug-of-war
The index decides, not negotiation skill. Save weeks per year that previously went into price-adjustment emails.
Contractually anchored
Index clause, threshold, cadence are part of the framework agreement. Both parties know the rules from day one.
Predictable costs
Index trends + known thresholds yield a reliable cost forecast — better budgeting, fewer ugly surprises.
Frequently asked questions about auto price maintenance
What is price indexation in packaging contracts?
A price index clause (also called escalation clause or index clause) couples the unit price to a raw-material or material index. If recovered paper rises 8%, the corrugated unit price rises automatically in the defined ratio. Benefit: no annual negotiation rounds, no unilateral price increases, fair adjustment in both directions.
Which indices does PAXLY use for price adjustments?
Material-specific: corrugated and folding-carton prices typically couple to recovered-paper indices (e.g. EUWID Recovered Paper) and energy costs. Plastic films to polymer spot prices for PE, PP or PET. The specific index is chosen per contract — what fits the supplier's cost structure and is mutually accepted.
How often is the price adjusted?
The cadence is contractual: typically quarterly or semi-annually for stable materials (paperboard), monthly for more volatile ones (films coupled to polymer spot prices). Within the period, the threshold (e.g. ±5% index move) takes effect — small swings get smoothed, only significant moves cause price changes.
How does Auto Price Maintenance differ from the Price Index?
The price index (see "Price Index" feature) shows where the market is right now — a benchmark for every new quote. Price maintenance applies to live contracts: it ensures agreed contract prices move with the market automatically, without manual negotiation. The two work together — the index is the data backbone, maintenance is the mechanism.
What if a supplier refuses an adjustment?
With a contractually anchored index clause the adjustment is binding — there is no individual negotiation room. That is the value: no debate over each move. PAXLY calculates, documents the source data, and both sides see the same numbers. Disputes become the exception rather than the rule.
Is automatic price maintenance worthwhile for smaller volumes?
Especially for smaller volumes: annual price rounds eat disproportionate time relative to the savings at stake. With index clauses the adjustment runs in the background, and procurement can focus on strategic decisions instead of price ping-pong.
Should we wait for raw-material prices to come down before signing a packaging contract?
No — and that is one of the most expensive mistakes in packaging procurement. With an index clause in the contract, the signing date is irrelevant: prices follow the market index movement automatically across the whole term. You can sign a contract that takes effect today — or one that starts in 18 or 24 months — and in both cases it tracks the fair market price continuously, without you having to predict raw-material cycles. Without indexation you bet on the market; with indexation you put the market to work for you. The lever is contract mechanics, not the right buying date.
More features
Packaging Tenders
Structured RFQs, comparable quotes, replace Excel chaos.
Packaging Price Index
Market prices per material, audit-proof, EUWID & Destatis.
Manage Packaging Suppliers
Consolidate, score, see single-source risks.
PPWR Packaging Compliance
EU Packaging Regulation — what you need from suppliers.
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